Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company reported a revenue of 1.338 billion yuan in 2023, a decrease of 5.49% year-on-year, and a net profit attributable to the parent company of 313 million yuan, down 22.08% year-on-year. The first quarter of 2024 saw a revenue of 282 million yuan, a decrease of 23.34% year-on-year, with a net profit of 58 million yuan, down 46.46% year-on-year. The decline in revenue is attributed to downstream customers' inventory destocking, particularly affecting the home respiratory device components segment, which saw a revenue drop of 18.12% to 867 million yuan. However, the company is expected to achieve significant growth through its diversified business strategy as short-term impacts fade and new businesses take off [2][4][10]. Financial Performance Summary - In 2023, the company's gross margin was 41.19%, down 1.85 percentage points year-on-year, while the first quarter of 2024 saw a gross margin of 38.29%, down 5.11 percentage points year-on-year. The increase in expense ratios for sales, management, and R&D was noted, with 2023 rates at 2.38%, 7.57%, and 9.00% respectively, and the first quarter of 2024 showing increases to 3.27%, 8.30%, and 8.07% [11][19]. Revenue and Profit Forecast - The company is projected to achieve revenues of 1.686 billion yuan, 2.091 billion yuan, and 2.602 billion yuan for 2024, 2025, and 2026 respectively, with corresponding growth rates of 26.03%, 24.05%, and 24.41%. The net profit attributable to the parent company is expected to be 390 million yuan, 479 million yuan, and 611 million yuan for the same years, with growth rates of 24.47%, 22.95%, and 27.49% respectively. The three-year compound annual growth rate (CAGR) is estimated at 24.95% [4][12]. Valuation - The company is assigned a target price of 28.78 yuan based on a 30 times price-to-earnings (PE) ratio for 2024, with current price at 22.79 yuan [5][4].
短期业绩承压，多元拓展未来成长空间大